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2009 Supreme(SC) 1337

Supreme Court of India
THE HONOURABLE MR. JUSTICE S.B. SINHA & THE HONOURABLE MR. JUSTICE CYRIAC JOSEPH
Dy. Collector, Land Acquisition Gujarat & Another
Versus
Madhubai Gobarbhai & Another
CIVIL APPEAL NO. 204 OF 2000 With C.A. No. 213/2000, C.A. Nos. 214-219/2000, C.A. No. 205-212/2000, C.A. No. 221-324/2000, C.A. No. 325-331/2000, C.A. No. 4090/2000, C.A. No. 4091/2000, C.A. No. 2973-2978/2001
Decided On : 29-07-2009

Headnote:case - Determination of market value of acquired land - Distinction between agricultural and non-agricultural land – Must not be forgotten - Even in same locality value of both lands may be considerably different - Existence of amunities like road, station, airport schools, hospital etc play an important role in determination of market value.

       [Para 42]

       B. Land Acquisition Act, 1894, Section 23 - Land acquisition compensation case - Determination of market value of acquired land – Relevant considerations to be considered by acquisition collector - Situation of land and particularly the area in which it is situated is a relevant factor in determining the compensation - Value of land situated within the jurisdiction of Gram Panchayat - Can be compared with value of land situated within municipality.

       [Para 55]

       C. Land Acquisition Act, 1894, Section 23 - Land acquisition compensation case - Determination of market value of acquired land - Purely agricultural lands - No buildings acquired - No development expected in near future - Land acquired for the purpose of submergence - Valuation should be determined accordingly – Rate of Rs. 501 –sqm justified.

       [Paras 59 and 60]

       D. Land Acquisition Act, 1894, Section 23 - Land acquisition compensation case - Determination of market value of acquired land - Building potentiality - Purpose for which land is sought to be acquired - Distance of land from highways etc.- Relevant to be considered while ascertaining market value of acquired land.

       [Paras 56, 57 and 92]

       E. Land Acquisition Act, 1894, Section 23 - Land acquisition compensation case - Determination of market value of acquired land - Land to be acquired situated in developed area near aerodrome, school etc – Relevant to arrive at market value of acquired land - Market value assessed for non-agricultural land @ Rs 240/- per sq mtr and for agricultural land @ Rs 160/- per sq mtr.

       [Para 113]

       F. Land Acquisition Act, 1894, Section 23 - Land acquisition compensation case - Determination of market value of acquired land - Acquired land having godown over it – To be compensated with respect to rental income of godown – Regarding land over which godown is standing no separate compensation paid.

       [Para 118]

Judgment :-

S.B. Sinha, J.

These appeals involving common questions of law and fact were taken up for hearing together and are being disposed of by this common judgment.

The State of Gujarat issued diverse notifications for acquisition of a huge tract of lands for construction of a dam over a river known as `Thebi. The lands sought to be acquired were spread over in three villages, namely, Amreli, Baxipur and Giriya. Whereas villages Amreli and Baxipur are situated on the western side of river and within the municipal limit of the town of Amerli; village Giriya is on the eastern bank thereof and outside the municipal limit of the said town Amreli.

Amreli is the headquarters of the District Amreli. It is a well developed town. A National Highway known as "Amreli - Chittal Road" passes through the town of Amreli.

The residents of the town enjoy the facilities of transportation, hospitals, schools, colleges, telephone, etc. It is, however, admitted that the entire development has taken place on the eastern bank of the river and not on the western bank. The villages situate on the western bank, however, admittedly are wholly undeveloped. The lands under acquisition are agricultural lands. The land upon acquisition were to be submerged under water.

The Land Acquisition Officer made three different awards for three different villages.

For agricultural lands situate in village Baxipur, which are the subject matters of judgment and order dated 23.02.1998 passed in F.A. No.3119/1997 and F.A. No. 3120/1997 and judgment and order dated 4.5.1999 passed in F.A. Nos. 6184-6203/1995 and other connected appeals, compensation was awarded at the rate of Rs.75/- per square meter.

Out of 350 land owners, however, only 156 land owners filed applications for reference before the Collector in terms of Section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as, "the said Act").

The Reference Court awarded compensation calculating the market value thereof at the rate of Rs. 75/- per square meter in respect of lands situate in Baxipur village (western side of river Thebi), Giriya village (eastern side of river Thebi) and Amreli village (western side of river Thebi). So far as the lands situate within the Amreli town, which is within the municipal area and situate on the eastern side of the river comprising of residential and commercial area which was developed since 1984, are concerned; the Land Acquisition Officer awarded compensation at the rate of Rs.50/- per square meter in respect of agricultural lands, but the Reference Court and the High Court awarded compensation at the rate of Rs.160/- per square meter of land. For the same area in respect of non-agricultural lands, the Land Acquisition Officer awarded compensation at the rate of Rs.150/- per square meter whereas the Reference Court as also the High Court awarded compensation at the rate of Rs.240/- per square meter.

So far as acquisition of lands which are subject matter of C.A. No. 325-331/2000, situated in village Giriya are concerned; whereas the Land Acquisition Officer awarded compensation at the rate of Rs.12/- per square meter in respect of agricultural lands and Rs. 50/- per square meter in respect of non-agricultural lands, the Reference Court awarded compensation for both categories of land at the rate of Rs.400/- per square meter, the High Court, however, while upholding the said amount of compensation in respect of non-agricultural lands reduced the amount of compensation to Rs.300/- per square meter for agricultural lands.

Aggrieved by and dissatisfied with the aforementioned judgments, the State of Gujarat is before us. An appeal has also been filed by some of the claimants owning nonagricultural lands and raised constructions for use of the same as godown.

We may deal with the relevant facts and submissions made before us in each group separately.

GROUP – I

With a view to appreciate the rival contentions of the parties, we may notice heretobelow the number of matte






























































































































































































































































































































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